This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future issues in your inbox. Hi, it’s Leonie Kidd with today’s edition of Morning Squawk. Cooler heads prevail after the monster rally that sparked the Dow’s best day in more than a year and a half. Investors are now assessing the impact of a new Democrat-controlled Congress and how that changes the market landscape. What’s Happening Now: A Pause for Reflection Futures are mixed across Wall Street after the Dow closed its best day since April 2025, soaring more than 1,500 points on the Democrats’ decisive midterm victory. A big boost for stocks came from the drop in the price of oil. Brent and WTI have stabilized lower after falling more than 8% in Wednesday’s session. This came as the Trump administration admitted the role the Iran war had played in poor Republican results. The United States Capitol building is seen in Washington, DC, on November 2, 2026. Jemal Countess | AFP | Getty Images It’s been a mixed move from Asia, where Japan’s Nikkei and South Korea’s Kospi fell sharply amid a deepening tech slump, despite strength across the market. European stock markets are generally up. President Donald Trump told CNBC’s Eamon Javers in a brief call Wednesday night that he can work with Democratic majorities in the next Congress on “a lot more things than people understand.” Analysis: Analysts have briefed CNBC on the drivers behind the monster rally, and Generali’s Thomas Hempell said Trump’s openness to collaboration shows that “more adverse polarization can be avoided.” Outpouring of relief: Deutsche Bank’s George Saravelos said Trump’s acceptance of the results “will act as a brake on extreme political outcomes and reduce risk premiums.” Coming up: We’ll get the Fed’s take when CNBC’s Steve Liesman speaks with Richmond Fed President Tom Barkin at 9 a.m. ET. He had previously said consumers are “exhausted and frustrated” with high prices. Big drivers: the Musk crisisThe pressure continues on Elon Musk’s companies. Tesla and SpaceX are falling again in pre-market trading, after falling more than 3% during yesterday’s session. Why it matters: Selling pressure focused on Musk’s companies after his $474 million election bid failed. Musk now has fewer allies in Congress and more obstacles in Texas. Billionaires’ take: CNBC’s Luke Fountain reports on how Wall Street billionaires are reacting to the outcome, with Virgin’s Richard Branson and LinkedIn co-founder Reid Hoffman asking for money to get out of politics, while Elon Musk joked that his “election-interfering space lasers” had failed. A video shows Elon Musk, founder of SpaceX, after the company’s initial public offering on the Nasdaq MarketSite in New York on June 12, 2026.Michael Nagle | Bloomberg | Getty Images Impact on profits: Taking the shoulder off Qualcomm One of those that fell the most at the beginning is Qualcomm. Shares fell more than 9% in premarket trading after fourth-quarter smartphone chip sales missed estimates. Analysis: Seaport analyst Jay Goldberg said Qualcomm’s data center business is barely making up for its smartphone losses. Price Targets: JPMorgan, Morgan Stanley and TD Cowen have lowered their price targets for the stock to between $185 and $200 per share. Coming up: CNBC speaks with Qualcomm CEO Cristiano Amon today at 12:20 pm ET after he told investors, “We don’t have a demand problem.” Qualcomm Inc. Chairman and CEO Cristiano Amon speaks during the company’s press event for CES 2022 at the Mandalay Bay Convention Center on January 4, 2022 in Las Vegas, Nevada. Ethan Miller | Getty ImagesGet Morning Squawk delivered straight to your inboxCrypto Watch: Cautious rebound Cryptocurrencies rise cautiously overnight as investors assess how much the new Democratic makeup of Congress will affect opinion in Washington. Bitcoin hovers around the $80,000 mark, lifting the broader crypto space. Why it matters: CNBC’s Tayana Macheel will discuss how the midterm results could reset the political calculus for cryptocurrencies, ushering in a more confrontational approach and pushing industry-friendly legislation like the CLARITY Act to the back burner. What’s next?: Experts told CNBC’s Make It that they shouldn’t expect an immediate change, saying that “platforms will continue to offer the products they offer today, and they still have friendly regulators at the SEC and CFTC who are approving an increasingly wider range of crypto products.” the debt limit. Unless a defeated Republican Party makes a quick and unlikely show of unity to get the issue off the table in its final weeks in power, the protracted fight that will unfold will be nastier than ever, adding volatility to an already unstable bond market. The Daily Dividend: CNBC’s Sean Conlon, Spencer Kimball, Pippa Stevens, Luke Fountain, Matt Peterson and Mike Winters contributed to this report. Jack Sommers edited this edition.
